Review focus: "There is no way to anticipate or avoid all of the problems of dealing with Chinese business people and bureaucrats, but there are are a number of common-sense guidelines.
 Boye Lafayette de Mente is one of our regular monthly columnists at the Asian Business Strategy and Street Intelligence Ezine. A noted author with over 30 years of experience in China, Japan, Korea and other Asian countries, Boye's tips on doing business in Asia are both pragmatic and enlightening. Some material is taken from Boye's many books exploring Asian cultural and business, business etiquette, customs, and language.
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There is no way to anticipate or avoid all of the problems of dealing with Chinese business people and bureaucrats, but there are a number of common-sense guidelines, learned the hard way pioneers in the country. They should help to minimize the problems and significantly enhance the possibilities of success. Here is a list of dos and don'ts that front line business is quick to share with newcomers:
- Know your own company and its products inside and out.
- At the beginning of a relationship with a Chinese company or
government bureau make a special point of emphasizing that your own
company follow high ethical standards, that you are bound by those
standards, and that they specifically prohibit under-the-table
payments. In order to make this pill go down a little easier it pays
to emphasize how everyone on both sides of the table will benefit
from a successful business relationship, appealing to the
nationalist pride of the Chinese. I recommend that this statement
of your company's ethical standards be in written form and printed on
impressive stationery.
- Know everything possible about the Chinese company or agency you
are going to be dealing with, including personal details about the
managers and executives you will be meeting. If necessary, engage the
services of an investigative agency to get behind the facade of the
organization. Make sure that whatever investigation is done covers the
"corruption rating" of the company or bureau concerned. If you are
going to do business in China through an agent, take special pains to
ensure that the agent is not one of the many that rely on primarily
bribes in dealing with bureaucracy and suppliers. If you are asked
for a bribe, do not show anger. Apologize sincerely nd present a
copy of your company's ethical guidelines, adding that if you agree
to any kind of unauthorized payment you will be fired. (If you need
and escape from this position, you can always agree to try to arrange
some kind of authorized consideration).
- If you are going to have employees in China, prepare a formal
written code of conduct and require that all new employees sign the
code as part of their employment contract.
- Be as informed as possible about current social, economic, and
political aspects of China. One of the best ways to accomplish this
is to interview other foreign business people who are stationed in
China and have been there for several years.
- Know as much as possible about the Chinese market as it relates to
your products and goals. Again, the insights of foreign
business people on the scene can be invaluable.
- Keep in mind that there is a social and political as well as
economic content to business in China and that you will have to be
knowledgeable enough and flexible enough to adapt to the Chinese
environment.
- Make sure your presentations are specific, comprehensive, and
clear.
- If you are using your own interpreter, make sure you qualify him
or her in advance. Also make sure he or she has studied your
presentation before your meetings.
- Prepare summary copies of your presentation, preferably in English
and Chinese, and pass them out at the beginning of the meeting.
- Take an open, friendly, sincere stance in your presentation. Some
say nice things about China (but don't overdo it) and about your own
country, adding that you believe a successful relationship will
contribute to both countries.
- Be totally honest and frank in your responses to questions,
proposals, or criticism. If anything is amiss, if there is any kind
of misunderstanding, cover it immediately. If you let it go by, it
will likely come back to haunt you because the Chinese will assume
that you approve or have no objections.
- Exude sincerity and goodwill, but be firm and consistent in making
points and position clear.
- Do not expect fast agreement from the Chinese side. Do not expect
seemingly endless litany of questions, requests for more information,
and a variety of demands.
- Be prepared to give a little on some points where you have leeway,
but always get something in return.
- Do not put yourself in a position where you have to have an answer
or a contract in three days or any other short time-frame. It also
pays to not put all your eggs into someone else's basket.
- Keep in mind that the Chinese are generous in their use of time.
They know that in most cases it is on their side and they will take
the fullest possible advantage of it. Put yourself in a position
where you can be patient and do not suffer.
- Stay friendly, stay firm, stay unflustered. Let the Chinese know
that, if you cannot reach an agreement within a reasonable period of
time for any reason beyond their control or your control, you are
prepared to do business with someone else.
- If you do not have powerful connections in China, get some help
from friends and or other connections and make them.
- Emphasize that the relationship must be mutually beneficial-a
relatively new concept in Chinese thinking.(The traditional and still
generally automatic reaction is that, in any foreign relationship,
the Chinese side should benefit first and foremost. Part of this
reaction is a holdover from the generations when foreigners were
expected to bring gifts to demonstrate friendship and recognition of
China as the supreme power. Nowadays, part of it is based on the
concept that China's needs take precedence over the foreigner's
desires to make what are typically perceived of as excessive
profits.)
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